By Abigail W. Adams
Portland, Me., April 22 – Credit Suisse Group AG placed two series of six-month mandatory convertible notes to a select group of shareholders, institutional investors, and high-net-worth individuals, according to a 6-K filing with the Securities and Exchange Commission.
The notes will be issued by Credit Suisse Group (Guernsey) VII, Ltd. on May 12 and are guaranteed by the Credit Suisse Group.
A fixed interest amount of 3% will be paid at their conversion and a floating interest will be paid if any cash dividend or distribution is made to shareholders prior to their conversion.
There are 100 million shares underlying the series A mandatory convertible notes and 103 million shares underlying the series B mandatory convertible notes.
The conversion price will be set at a discount of 5% to the volume-weighted average price of Credit Suisse shares on April 22 and April 23.
The series A notes have been directly allocated to investors.
The series B notes are being re-offered to shareholders by way of preferential subscription rights but investors have entered into a definitive agreement to purchase any mandatory notes not placed with shareholders.
Credit Suisse Group is a Zurich-based bank.
| Issuer: | Credit Suisse Group (Guernsey) VII, Ltd.
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| Securities: | Series A and series B mandatory convertible notes
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| Maturity: | Six months
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| Yield: | 3%
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| Conversion price: | A discount of 5% to the volume-weighted average price of Credit Suisse shares on April 22 and April 23
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| Pricing date: | April 22
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| Settlement date: | May 12
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| Distribution: | Private placement
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| Stock symbol: | SW: CSGN
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| Market capitalization: | CHF 22.57 billion
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